The water pressure was so bad when we bought it that it took 20 minutes to fill the tub to wash the kids.

If the bank charges a higher rate on the loan, it is likely a wash long term.Buying in your name with a personal mortgage and personal insurance then transferring to your entity can certainly cause issue in both the financing and insurance areas.Many investors fly by the seat of their pants and it works well for them...until it doesn't.

Roughly, our business could survive about a 65% vacancy rate and not require any outside funding to keep it solvent.

Do not comply and don't structure any legal silliness until we know if the authority for lead paint enforcement is at the state or local level and especially until after we have city elections so we can change the wash here in Toledo. 

So lets run the numbers again:13.26 year payback period so NOI is a wash in 13.26 years until you pay back your investment. in that 13 years you collect $53,300 in Cap ex, repair, and vacancy saving$15,000 of that gone in actual repairsLets go easy and say each turnover only costs you $2500 total (including vacancy). 2,500*20 = $50,000Lets also go easy and say each unit only costs you $500 a year in repair, so again over the payback period: 13*500*2= $13,000 in repairsTotaling up: $15,000 + $50,000 + $13,000 =$75,000. 

You really should consider high volume use restrictions like not filling swimming pools or car washing,  hose running etc.  

Car wash maybe?

Then for  fun I have set up a metal wash tub and a wash board set up in the laundry room along with a rope for a clothes line .  

I knew they wholesaled the properties but didn't know they just wash their hands after you buy it.

Both cities have their own advantages and disadvantages vis a vis each other, which makes it pretty much a wash in my opinion.I have noticed a slight cooling of the competition for properties in Houston recently.